Understanding the Intricacies of Finance Bill, 2021 VisaVis GSTAshish Mittal, dated 5 March, 2021

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The Tax Publishers Understanding the Intricacies of Finance Bill, 2021 Vis-a-Vis GST Ashish Mittal The Finance Bill 2021 had proposed amendment in 15 sections of the Central Goods and Service Tax Act 2017 (hereinafter referred to as CGST Act, 2017) and in 1 section of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as IGST Act, 2017). An attempt is made in this Article to deal with intricacies of the amendments proposed thereby interlinking the changes proposed in the CGST Act, 2017 vide the Finance Bill 2021. 1. Introduction & Understanding the essence of Finance Bill 2021: On 1-2-2021, Our Honble Finance Minister Nirmala Sitharaman Ji presented the first of its kind a complete digital budget which is a historical moment for the country and a step towards the paperless economy. Packages announced & budgets allocated to strengthen driving the economy towards an Atma Nirbhar Bharat in line of the esteemed vision of Our Honble Prime Minister Shri Narendra Modi Ji. Various changes have been announced in Direct, Indirect Tax & Allied Laws focusing on curbing the Fake Invoicing & Black Economy thereby tabbing the untaxed transaction and bringing the loopholes in law to the tax net. While announcing the Indirect Taxation Proposals, Honble FM announced some changes in rates in Customs Law and had referred the annexure for changes in GST Law. The Finance Bill 2021 (hereinafter referred to as FB 2021) had proposed amendment in 15 sections of the Central Goods and Service Tax Act 2017 (hereinafter referred to as CGST Act, 2017) and in 1 section of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as IGST Act, 2017). An attempt is made in this Article to deal with intricacies of the amendments proposed thereby interlinking the changes proposed in the CGST Act, 2017 vide the FB 2021. 2. Scope of supply widen-principal of mutuality murdered (i) Brief Background The Honble Supreme Court in its Landmark Judgment in the erstwhile Service Tax Law in the Matters of State of West Bengal v. Calcutta Club Limited, had laid down the principle that there is a doctrine of mutuality applicable between a club and its members and these Clubs or associations do not have any separate existence from their members. Further, members and clubs are not distinct persons and do not have any separate existence. Thus the question of levy of VAT or Service Tax do not arises as one cannot sell something to oneself. The doctrine of mutuality still hold good even after the 46th Amendment adding Article 366(29-A) to the Constitution of India. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Understanding the Intricacies of Finance Bill, 2021 Vis-a-Vis GST

Ashish Mittal

The Finance Bill 2021 had proposed amendment in 15 sections of the Central Goods and Service Tax Act 2017 (hereinafter referred to as CGST Act, 2017) and in 1 section of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as IGST Act, 2017). An attempt is made in this Article to deal with intricacies of the amendments proposed thereby interlinking the changes proposed in the CGST Act, 2017 vide the Finance Bill 2021.

1. Introduction & Understanding the essence of Finance Bill 2021:

On 1-2-2021, Our Honble Finance Minister Nirmala Sitharaman Ji presented the first of its kind a complete digital budget which is a historical moment for the country and a step towards the paperless economy. Packages announced & budgets allocated to strengthen driving the economy towards an Atma Nirbhar Bharat in line of the esteemed vision of Our Honble Prime Minister Shri Narendra Modi Ji.

Various changes have been announced in Direct, Indirect Tax & Allied Laws focusing on curbing the Fake Invoicing & Black Economy thereby tabbing the untaxed transaction and bringing the loopholes in law to the tax net.

While announcing the Indirect Taxation Proposals, Honble FM announced some changes in rates in Customs Law and had referred the annexure for changes in GST Law. The Finance Bill 2021 (hereinafter referred to as FB 2021) had proposed amendment in 15 sections of the Central Goods and Service Tax Act 2017 (hereinafter referred to as CGST Act, 2017) and in 1 section of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as IGST Act, 2017). An attempt is made in this Article to deal with intricacies of the amendments proposed thereby interlinking the changes proposed in the CGST Act, 2017 vide the FB 2021.

2. Scope of supply widen-principal of mutuality murdered

(i) Brief Background

The Honble Supreme Court in its Landmark Judgment in the erstwhile Service Tax Law in the Matters of State of West Bengal v. Calcutta Club Limited, had laid down the principle that there is a doctrine of mutuality applicable between a club and its members and these Clubs or associations do not have any separate existence from their members. Further, members and clubs are not distinct persons and do not have any separate existence. Thus the question of levy of VAT or Service Tax do not arises as one cannot sell something to oneself. The doctrine of mutuality still hold good even after the 46th Amendment adding Article 366(29-A) to the Constitution of India.